Has breaking through the resistance line lifted investor sentiment?

This week, emerging markets saw an increase. While the Nikkei Average was +0.37% during the same period, the Growth Market Index was +4.98%, the Growth Market 250 Index was +5.20%, highlighting the strength of the growth market. The attention-grabbing Lower House election resulted in the ruling party falling below a majority, but as the market had already priced this in, the Tokyo market followed with a dominant buy-back trend. The progressing National Democratic Party's potential to take power increased, leading to a rise in related stocks. Major stocks in the growth market were being bought, with both the Growth Market Index and Growth Market 250 Index rising for the fourth consecutive day since the start of the week. With trading volume reaching the 100 billion yen mark for consecutive days, investors are gradually returning.

Among the top market capitalization stocks, Tymie <215A>, the largest player in temporary staffing, rose as a stock related to the National Democratic Party. Other stocks such as SeaYouSea <9158> were bought on the basis of good performance, while Cover <5253> surged due to good performance and positive reports from securities companies. GENDA <9166>, which had been under selling pressure, also saw a dominant buy-back trend. In other stock movements, Flutter Flutter <2586> surged due to strong sales of Acai, while lower-ranked stocks Global Way <3936> and Dream Vision <3185> were sold off, as well as Ama Kaze Taiyo <5616>, a stock related to Ishiba, which also faced selling pressure. On the 28th, Hmcomm <265A> debuted in the growth market, opening 32.7% higher than the offering price at 1,128 yen. Similarly, Sapeet <269A>, which also debuted in the growth market on the 29th, opened 52.3% higher than the offering price at 2,285 yen. Afterward, Sapeet hit the daily limit for three consecutive days, with short-term funds flowing in.

Interest in recent IPO stocks remains high.

Next week in the emerging markets, attention will turn to the outcome of the US presidential election on the 5th. With results likely to be known during Tokyo hours on the 6th, both the main board and the growth market could see volatile movements on that day. While it is believed that the growth market will not be as affected as the main board, a sharp decline in the main board or the Nikkei Average could influence investor sentiment. The Growth Market 250 Index rose up to the 25-day moving average (25MA), but attempting to break through this level is likely to happen after the US presidential election. With an increasing trend in trading volume, if the upper resistance line is firmly surpassed, investor sentiment is likely to improve.

Continuing to focus on major stocks, funds are expected to flow towards stocks with lighter price movements due to the weight of the US presidential election and the many companies scheduled to announce earnings in mid-November. With few earnings report stocks currently, and no IPOs scheduled until late November, interest remains high in recent IPO stocks. Sapeet, which hit the daily limit for 3 days in a row, and Growth Expert Partners <244A>, which is setting new highs since its listing, have a good supply-demand balance. Additionally, Kids Star <248A> that has found support after a downturn, and ROXX <241A> showing gradual resistance should be noted.